Men have been charged by Federal prosecutors with bank fraud, wire fraud and money laundering this week. The charges are against 50-year-old Andrew Lloyd of Lebanon, OR and 38-year-old Russell Schort of Myrtle Creek, OR.
Men Applied with PPP Loans
The pair applied for and received three different Paycheck Protection Program (PPP) loans from April 7 to May 8, according to prosecutors. They are worth more than $2.2 million dollars.
On January 6th, Schort under arrest and on January 7th, Lloyd was under arrest, too. In fact, Schort and Lloyd both have appeared in federal court on the charges.
Men applied for PPP Loan for $642,507
Moreover, Lloyd applied for a Paycheck Protection Program (PPP) loan for a business called Albany Home Care Services and received a loan for $642,507. Therefore, this is what the criminal complaint put in federal court on April 7th.
Moreover, 56 employees are listed that have been put on this complaint of the company, Lloyd said. In addition, to the amount paid to each employee.
Another PPP Loan for $979,100
On April 14th, Lloyd applied for a loan through Keystone Pacific Management according to the same paperwork. Lloyd received a PPP loan for $979,100. Again, it has the same list of employees in the same order revealed plus 8 more.
PPP Loan for $610,552
Schort was doing business as Schort Lee Construction on May 8th. He received a PPP loan for $610,552. It is listed in the compliant the exact same 56 employees and the total amount of earnings as the Albany Home Care Services loan application.
Tracking Other Cases Across the Nation of Suspected Fraud
As a result, tracking close to 80 other cases across the nation of suspected fraud cases is what the Project of Government Oversight has been doing. Each one of the applications should have been red-flagged according to Senior Investigator Nick Schwellenbach.
“Obviously, those red flags didn’t go off. If they did, they weren’t following upon. This is something that should’ve stop before they got at least the second and third loans. Yet that didn’t happen.” Schwellenbach said.